1. Technology Assessment: FMC – Fixed Mobile Convergence
DeLynn Bettencourt –
Kevin Cheng -
Yuval Elshtein –
Qintao Zhang -

2. Overview Trends in Spectrum Fixed Mobile Convergence Technology
Industry Overview
Proponents of technology
Industry reaction
Strategic considerations

3. Source: Federal Communications Commission
Spectrum trends
Source: Federal Communications Commission

4. FMC
Source: Cisco

5. Multi-Mode Mobile Device
Diagram of Multi-mode Mobile Device Usage
Office (IPBX/WLAN)
Coffee Shop (Hotspots)
Airport (Hotspots)
Driving (Cellular Network)
Home (Wi-Fi or local wireline provider)
USER

6. Multi-Mode Mobile Device
Diagram of Multi-mode Mobile Device Usage
Office (IPBX/WLAN)
Coffee Shop (Hotspots)
Airport (Hotspots) ?
Driving (Cellular Network)
Home (wi-fi or local wireline provider)
USER

7. The Promise of FMC Single phone and phone number for all locations
Able to choose the lowest rate and SEAMLESSLY transfer calls to take advantage of it
Have decent cell reception indoors

8. Multi-Mode Mobile Device
Examples of Multi-mode Phones
Motorola CN620 dual-mode phone (not pictured)
- roam between cellular and networks
Works with about 75 per cent of access points from Avaya and Proxim Corp.
Gigaset SL75 WLAN VoIP cordless telephone for the home or office
UTStarCom F1000 WIFI VOIP Phone

9. Industry Overview
Average Monthly Household Telecommunications Expenditures
By Type of Provider
Average Monthly Household Telecommunications Expenditures
By Type of Provider
Year
Local Exchange
Long Distance
Total
Wireless Provider
1995
$30.00
$21.00
$51.00
$7.00
$58.00
2003
$37.00
$10.00
$47.00
$41.00
$88.00
Source: Calculated by FCCIndustry Analysis and Technology Division staff using survey data from TNS Telecoms

10. Industry Overview Top US Wireless Network Operators
Top US Wireline Network Operators
Company Name
Annual Sales (2004)
Venture of
Cingular Wireless
19.4 B$
BellSouth (wireline) and SBC Communications (wireline)
Verizon Wireless
27.6 B$
Verizon (wireline) and Vodafone (UK wireless)
Sprint/Nextel
27.4 B$
Sprint (US Wireless) and Nextel (US Wireless)
T-Mobile
9.3 B$
Deutsche Telekom (German Wireline)
Company Name
Annual Sales (2004)
Verizon
71.2 B$
AT&T[2]
30.5 B$
Sprint/Nextel
27.4 B$
MCI
20.6 B$
Top Cable and Satellite Companies (Ranked By Sales)
Company Name
Annual Sales (2004)
Number of customers
Comcast Cable
19.3 B$
21.5 million
- 7 million broadband customers
Directv
11.4 B$
14 million
Time Warner Cable
8.4 B$
10.9 million
– 4.1 million broadband customers
Partnered with MCI and Sprint in order to offer Digital Phone, a VoIP telephony service

11. Handset Manufacturers
Pushing FMC
Handset Manufacturers
Company Name
Annual Sales (2004)
Nokia
39,6B$
Motorola
31,3 B$
Samsung
9,2 B$
Siemens
93,4 B$
Sony Ericsson Mobile
8,9 B$
Fairly inexpensive to add Wi-Fi capability to a handset,
FMC is a truly disruptive technology that provides both
cost savings and convenience to the customer

12. Affected players Wireline Cellular Service Providers
Usually the ones who supply high speed Internet access to businesses
Interface to wired service while at home
Cellular Service Providers
Reduce customer churn
Cingular, Verizon, and Sprint/Nextel are reselling access to a 3,300+ hotspot network operated by Wayport, Inc.

13. Affected players VoIP Handset Manufacturers
Skype, a major VoIP provider, will have its service installed on the i-mate PDA
VoIP pureplays will need strategic partnerships to ensure they remain in the FMC network
Handset Manufacturers
Should partner with service providers to ensure rollout of FMC -
“Avaya To Resell Dual-mode Motorola Handset For Cellular, WLAN Networks”

14. Affected players Handset OS Meanwhile, Microsoft is
partnering with Sleipner-Calypso
to provide seamless transfer
capability using software
“Kineto Wireless, has joined the Symbian Platinum Partner program and will port the Kineto UMA Client Software to the Symbian OS platform”

15. Strategy Issues System Effects: Lock-in Network Effects?
FMC relies on the interworking of several components: the handset, the cellular network, the VoIP technology, the WIFI network, among others
Lock-in
Providing partial call rollover (transition only to authorized networks) might be employed by incumbent cellular carriers
Network Effects?

16. Strategy Issues Standards 802.11x
Seamless transition standards are crucial
Kineto wireless ( a startup supplier of convergence hardware ) was able to sign up most of the major vendors to the UMA (unlicensed mobile access) standard, eventually becoming 3GPP (3rd Generation Partnership Program)
British Telecom Cingular Ericsson Motorola Nokia Nortel Networks O2 Research in Motion Rogers Wireless Siemens Sony Ericsson T-Mobile US

17. Questions?
FMC – Fixed/Mobile Convergence (also called WCC - Wifi/Cellular convergence
And Cell-Fi) AP - Wifi access point IP PBXs – Digital PBX system that uses VOIP Wi-Fi WLANs  - inside the office, wireless phones that use the office WLAN VoWLAN – Combination of IP PBX and WLAN to have an in-office portable phone (also called Voice Over Wi-Fi)
Wireline networks - Use wires and cables to connect customers’ premises to central offices maintained by telecommunications companies.
Wireless networks - Operate through the transmission of signals over networks of radio towers.
WiMAX — World Interoperability for Microwave Access, also known as IEEE — is an emerging global broadband wireless standard
LEC – Local Exchange Carriers. Wireline service providers that connect a voice call locally
VOIP – Voice over IP. Voice communications are normally split up and reassembled by telecommunications companies’ switching and routing equipment. Voice over Internet Protocol splits up the conversation into packets in the telephone, transmitting the conversation over the Internet.